IVGVI Analysis

I-V-G-V-I Analysis:

The I-V-G-V-I Analysis will help you to understand and position your business well. This analysis will help any business to build a sound business strategy. This analysis will help businesses to understand how to relate the idea or the business into market standards

This analysis is usually performed by owner of the idea (or) entrepreneurs (or) the head of sales, business development and business strategy

Industry: The term Industry refers to the line of business or categorization of business. For example: Healthcare, Retail, Manufacturing, High-Tech, Information Technology and etc are the different industry categories. It is very much important to understand to which Industry does your business belongs to, this is very critical exercise.

Vertical: The term Vertical here refers to the Industry sub-set. Most businesses share the shadow of other industries, it is very important to clearly understand what their parent industry and their subset. For example: Med Plus is a medical retail outlet, it is very important to understand the parent industry and the subset here. Since the business is retail, the parent industry is Retail and the subset is Healthcare because of its nature.

Again understanding your own business is very important at-least to communicate others what your business is

Geography: The term Geography here refers to the location of business. The manufacturing location has lot of strategic reasons. Multiple factors should be kept under consideration before identifying the right geographic location that includes resources, skills, infrastructure and etc. For example: Most car manufacturers manufacture cars in India and supply it to other Asian countries.

Vision: The above three analysis would give you enough idea on what and where to start your business. Now it is time to articulate to yourself on the vision of your idea. The term vision here refers to the difference between your current situation and your future. How would you like your business to grow in the next one year? The growth can be either qualitative (or) Quantitative. It can be anything like size, revenue, goodwill, infrastructure and etc. For example: Facebook had a vision on X number of users before they got into revenue model. Most start-ups would prefer to have short term vision; it can be either Half-yearly (or) Yearly.  The vision statement would help you to evaluate on the right investment figures.

Investment: The term Investment here refers to investment for manufacturing or production or to start the business. With the above 4 analysis, you will be able to evaluate the cost of investment considering the industry, vertical, geography and vision

This exercise is very important because this helps you to

1. Deeper understanding of your own business
2. Creates the ability to confidently communicate others about your business
3. Helps you to easily relate your business to the market standards
4. Helps everybody to map what you do
5. And very importantly helps you to identify your customers

You may easily find more references on SWOT analysis in Google, I will cover the SWOT Analysis for business in my next blog.